Fopp workers to hear about future

Fopp's 81 stores were shut on Friday after receivers were called into the struggling business, which also owns some former Music Zone outlets.

Ernst & Young said they would inform the 800 staff about their future after assessing the state of the business.

Fopp is the latest victim of the slump in CD sales.

Industry problem

Other retailers such as HMV have also suffered a sharp fall-off in sales as more customers have migrated online to access music.

There is still hope a buyer may be found for some or all of Fopp's stores.

But it is likely than many of the firm's employees will lose their jobs.

Known for cheap CDs, DVDs and books, the Glasgow company has insisted it remained profitable but had failed to gain support from stakeholders and suppliers.

Analysts say Fopp has been hit by the rise of supermarkets and online retailers selling CDs and DVDs, as well as the surging popularity of downloading music from the internet.

There has also been speculation that Fopp's purchase of 67 stores from the administrator of music retailer Music Zone had put pressure on the firm's cash flow.

That deal trebled the number of branches of Fopp, which was originally set up from a market stall in Glasgow.

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